#1
Which of the following best describes the law of demand?
As price increases, quantity demanded decreases
As price decreases, quantity demanded decreases
As price increases, quantity demanded increases
As price decreases, quantity demanded increases
#2
In economics, what does 'GDP' stand for?
Global Development Policy
Gross Domestic Product
Government Development Plan
Gross Demand Proportion
#3
What does the term 'opportunity cost' refer to?
The cost of an economic opportunity
The cost of producing one additional unit of a good
The value of the best alternative foregone
The total cost of production
#4
What is the primary goal of monetary policy?
To control government spending
To stabilize prices and control inflation
To regulate international trade
To provide subsidies to industries
#5
What does the term 'ceteris paribus' mean in economics?
All other things being equal
Considering only marginal changes
Without any constraints
At the same rate of change
#6
In economics, what does 'CPI' stand for?
Consumer Price Index
Central Product Information
Corporate Profit Index
Cost-Price Indicator
#7
What is the main function of a central bank in a country's economy?
To control the fiscal policy
To regulate the money supply
To provide subsidies to industries
To manage international trade agreements
#8
What is the 'invisible hand' concept in economics associated with?
Keynesian economics
Monetarist economics
Classical economics
Behavioral economics
#9
What is the formula for calculating price elasticity of demand?
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
#10
Which market structure is characterized by many small firms selling differentiated products?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#11
Which of the following is a fiscal policy tool used to combat inflation?
Increasing government spending
Decreasing taxes
Decreasing government spending
Increasing taxes
#12
Which of the following is an example of a regressive tax?
Income tax
Sales tax
Property tax
Corporate tax
#13
Which of the following is an example of a positive externality?
Pollution from a factory harming local residents
A homeowner installing solar panels and reducing carbon emissions
A company creating a new product that reduces competition
A firm laying off workers due to automation
#14
What is the 'Phillips Curve' used to illustrate?
The relationship between inflation and unemployment
The relationship between interest rates and investment
The relationship between GDP and economic growth
The relationship between government spending and fiscal deficit
#15
What is the 'Laffer Curve' used to depict?
The relationship between tax rates and tax revenue
The relationship between GDP and government spending
The relationship between interest rates and inflation
The relationship between exchange rates and trade balance
#16
What is the primary function of futures contracts in financial markets?
To provide insurance against financial losses
To facilitate the trading of physical goods
To hedge against price fluctuations
To regulate the stock market
#17
In economics, what does 'MV = PQ' represent?
Quantity theory of money
Keynesian economics
Phillips Curve
Classical economics